Abengoa Sa · OTC:AGOAF
Abengoa Sa — Investor Day (October 2019)
116 slides from Abengoa Sa's investor day presentation, Oct 15, 2019
Slide 1: Investor Day 2019
ABENGOA Hi Investor Day 2019 October 15th, 2019
Slide 2: Forward-looking statements
▪ This presentation contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) and information relating to Abengoa that are based on the beliefs of its management as well as assumptions made and information currently available to Abengoa. ▪
Slide 3: Introduction
Introduction Gonzalo Zubiria 3 Head of Investor Relations & Capital Markets
Slide 4: Agenda and speakers
1. 2019 Strategy Update 8. Coffee Break Gonzalo Urquijo Fernández de Araoz Executive Chairman 9. Suppliers Javier Pariente 2. Business Areas Chief Procurement Officer Joaquín Fernández de Piérola Marín Chief Executive Officer, Business Verticals 10. Human Resources and Sustainability Gonzalo Urquijo
Slide 5: 2019 Strategy Update
2019 Strategy Update Gonzalo Urquijo Fernández de Araoz 5 Executive Chairman
Slide 6: The Phoenix's Gifts
The Phoenix`s 4 Gifts Strength Fire control Resistance Healing tears “Mythological bird that is reborn from its own ashes” 6
Slide 7: Working towards the goal of zero accidents
69 and 1,498 days without fatal accidents among Abengoa personnel and its subcontractors’ personnel, respectively. One fatal accident in Brazil. Working towards the goal of zero accidents Lost Time Injury Rate – H1 2019 ABENGOA Contractors 3.0 934 69 1,498 Jun-18 Aug-18 Oct-18 Dec-18 Feb-19 Apr-19 J
Slide 8: Abengoa international company applying technology for sustainable development
Abengoa (MCE: ABG.B) is an international company that applies innovative technology solutions for sustainable development in the infrastructures, energy and water sectors. Global presence with a recognized position of 9.3 GW of installed power in 2.1 GW* solar power constructed, 860 MW leadership in
Slide 9: Restructuring I and II: Objectives Achieved and Implications
Abengoa has successfully addressed capital structure issues, emerging as a viable and uniquely attractive global EPC business Restructuring I: Objectives Achieved and Implications Key Developments (Last 2 Years) Mar-2017 70% debt write-off and capitalization (c.€7bn) and 95% shareholder Business Dev
Slide 10: Back to Basics – focus on E&C for third parties
✓ Back to Basics – focus on E&C for third parties ✓ Business divided into 4 main verticals (Water, Energy, T&I, Services) ✓ Geographical diversification / core markets ✓ General expenses and Balance sheet reduction ✓ Sale of non-core assets and business lines 10
Slide 11: Culture of accountability and internal control
Strong culture of accountability and internal control across the whole organization, which is managed under a decentralized approach • New Board of Directors appointed in November 2016. Board of • Comprised of 6 independent members + 1 executive member (Executive Chairman). Directors • Must approve
Slide 12: Active risk management throughout the project's life
Risk Management System which allows us to adapt Abengoa to the challenging risky environment and ensure its competitiveness. Risk Management System based in our Internal Control and Management System, where all policies and procedures of the company are focused in reducing the exposure to risk, crea
Slide 13: Abengoa's growth is focused on E&C
Abengoa’s growth is focused on E&C ✓ Pipeline of €29bn identified for future growth Services Asia Spain 6% Water 5% 6% Europe 10% 39% USA & Middle Canada East 7% €29bn T&I 25% €29bn Mexico & 35% C.A. 7% Africa Energy 10% South America 20% 31% ✓ Total of 3.5bn in bookings and 3bn of execution 2017-H1
Slide 14: Company's expertise and track-record add value for clients
Company’s expertise and track-record add value for its clients ✓ Highly qualified team with extensive experience ✓ Considerable amount of booking and execution 2017-H1 2019 ✓ Water challenges: Population growth/Water access/Water treatment. ✓ Energy market shifting to renewable sources (Renewable/Je
Slide 15: Business Areas
Business Areas Joaquín Fernández de Piérola Marín 15 Chief Executive Officer, Business Verticals
Slide 16: Evolution of the global energy market since Kyoto Protocol
The evolution of the global energy market since the Kyoto Protocol 16
Slide 17: Energy Storage and installed capacity growth
Significant growth expected in installed, with solar and wind leading the way Global installed power capacity in 2016 and 2040 by technology Newly installed power capacity by 20401 (GW)1 2% 6% Solar 4,181 GW 3% 12% 13% 7% 30% 10% Wind 2,051 GW 14% 2016 2040 Gas 900 GW 17 % 6,719 GW 12,879 GW 3% 1% 2
Slide 18: Water and Waste to Energy niche markets
Presence in niche markets with high barriers to entry Water Waste to Energy Global Water Market Municipal and €700 Bn Industrial(CAPEX + OPEX) 2018 • Waste-to-Energy (“WtE”) industry provides a sustainable alternative for the large amount of waste produced each year and which would be otherwise Glob
Slide 19: Four business verticals and technological know-how
Abengoa is structured in four business verticals: (i) energy, (ii) water, (iii) transmission & infrastructure and (iv) services Project types Description Key Figures Renewables • Significant experience in E&C and commissioning of power generation plants for both conventional (e.g., CCGT, cogeneratio
Slide 20: Diversified business mix and Glo-cal presence
Diversified business mix and “Glo-cal” presence to capture opportunities in attractive sectors Broad and Wide Client Base Worldwide • +78 years as EPC provider in Spain • +50 years as EPC player in South America • +38 years of experience in Mexico • +14 years as EPC services company in the Middle Ea
Slide 21: Engineering & Construction – core component of growth
Engineering & Construction – core component of growth Abengoa undertakes turnkey projects encompassing the entire value-chain: development, engineering, purchasing, construction, plant commissioning, in addition to operation and maintenance • Proven commercial skills combined with a robust bidding/r
Slide 22: Identified pipeline of €29bn
Identified pipeline of opportunities totaling €29bn, highly diversified across geographies and business verticals Pipeline by Vertical Growth Nodes Middle East • Relevance of sizeable water and energy Services projects with hybridization 6% Water • Local business development functions • Defined as n
Slide 23: Bidding activity and E&C project awards
Remarkable bidding activity and E&C project awards despite the financial restructuring Total EPC Pipeline and E&C Contracting Awards € 158 bn € 33 bn € 2 bn € 29 bn € 28 bn €6 €6 €7 €3 bn €1 bn €1 bn €2 €1 bn bn bn bn bn € 7 bn 2016 2017 2018 H1 2019 Average Pipeline Bids Presented Awarded Backlog E
Slide 24: Top-tier and longstanding client base
Top-tier and longstanding client base Energy Water H:\!G\!MI\Bruno Madan\2019-05-17\Abengoa.wor Transmission & Infrastructures Services ABENGOA 1 (ONEE) H:\!G\!MI\Bruno Madan\2019-05-17\Abengoa.wor H:\!G\!MI\Bruno Madan\2019-05-17\Abengoa.wor 24
Slide 25: Water & Energy
Water & Energy Pedro Almagro 25 Head of Abengoa Water & Energy
Slide 26: Leading international contractor in Water and Energy
Leading international contractor in E&C services in Water and Energy projects Health and Safety ABENGOA Water & Energy Contractors 1,712 Without accidents registered Days without accidents 26
Slide 27: Global technology EPC operator in water
Global technology EPC services operator in water, providing integrated development, engineering, technology and project execution services Core E&C Competencies Strategic Highlights • Internationally awarded, global leader in water Experience Diversification Engineering Know-How desalination • Prove
Slide 28: Global Water Market Forecast
Global Water Market Forecast The global water market is projected to grow from $770 billion in 2018 to $914.9 billion by 2023, from which 1/3 corresponds to capital expenditure Water Market trends Desal Market Forecast ▪ The increasing demand of water for food and energy production required developm
Slide 29: Water pipeline exceeds €28,000M
Abengoa´s Water market The water pipeline identified for Abengoa exceeds €28,000 M ( more than 570 projects) Pipeline by product ▪ Identified opportunities for €12,000 M(1) in opportunities for the next 12 6% Desalination months (Ongoing opportunities) Very selective approach at the 21% Hydraulic pr
Slide 30: Water projects: Taweelah, Rabigh, Agadir
Project Country COD Client E&C Project Description Project Overview • Taweelah project, to supply, construct and work on the engineering of reverse osmosis desalination plant to be located in the Taweelah (45km north of Abu Dhabi) power and water generation complex Taweelah 2022 • ACWA Power UAE • T
Slide 31: Global leader in large turnkey energy E&C projects
Global leader in large turnkey E&C projects on conventional and renewable energy, with proprietary technology and technical process Core E&C Competencies Strategic Highlights • International reference in the construction of conventional Proprietary Standardization Engineering Supply Chain and renewa
Slide 32: Energy market
Energy market The global installed capacity is expected to be in 2040 close to 13,000 GW, which represents an increased of 92% since 2016 (6,719 GW). Total investment Abengoa products €1,489 bn Total market of strategic products of Abengoa is over 1.400 billion EUR for the next 5 years (2020-2024).
Slide 33: Energy pipeline exceeds 33,000 MEUR
Energy market The 2019 energy pipeline identified for Abengoa exceeds 33,000 MEUR (more than 370 projects) Pipeline by product 3% ▪ Identified opportunities for more than €7.000 M(1) in the next 12 1% 11% 12% B1G&W2B months (Ongoing opportunities) CCGT& COG CSP 16% PV ▪ More than 70% of identified S
Slide 34: Energy projects: solar park, Fulcrum, Cerro Dominador
Project Project Country COD Client E&C Project Description Overview Mohammed bin • Mohammed bin Rashid Al Maktoum Solar Park is an E&C project to provide CSP Rashid Al Under Shanghai technology and build a solar field of 3x200 MW parabolic trough in Dubai Maktoum Solar Construction Electric • The pr
Slide 35: Transmission & Infrastructure
Transmission & Infrastructure Gonzalo Gomez 35 Head of Abengoa T&I
Slide 36: Turn-key E&C transmission & infrastructure projects
Development, engineering, procurement, construction and commissioning of turn-key E&C transmission & infrastructure projects Business Overview Strategic Highlights • Leading EPC provider for transmission and infrastructure projects • Best-in-class electric transmission & infrastructure • Core T&I se
Slide 37: Fully integrated value chain
Fully integrated value chain to develop competitive advantage and deliver premium returns Integrated Management System Recognition of our Customers Health and Safety Quality Environment OETC H&S is first We provide E&C solutions Focused on excellence for • Health & Safety & Environment Prize week ca
Slide 38: International reference in T&I capabilities
International reference in T&I capabilities with strong experience in HV / LV transmission lines and railway lines Transmission and Installations and Railway Steel Structures Ancillary Manufacturing Distribution Infrastructure Manufacturing • Transmission and distribution • Electrical and mechanical
Slide 39: Worldwide presence, market outlook and positioning
Worldwide presence fulfilling the main quality & environmental standards and country requirements Segment Market Outlook Positioning • Spain: participate in BOP opportunities or evacuation systems of new built renewable • Spain: substantial activity expected as a result of the electricity plants thr
Slide 40: Large experience in projects
Large experience in projects Project Country COD Client E&C Project Description Project Overview • Abu Dhabi Faya Transmission & • Faya transmission line project: Abengoa in charge of engineering, supply, Transmission 2017 construction and commissioning of 400/220 kV line, quadrupled system from Al
Slide 41: Services
Services Alberto Vergara 41 Head of Abengoa Services
Slide 42: Services business overview
Abengoa provides operation services and implements predictive, preventive and corrective maintenance of energy and water plants Business Overview Contractual highlights •Wide contract portfolio (#34) •Operation & maintenance (“O&M”) services to third party clients as well as •Long term contracts (co
Slide 43: Segment market outlook and positioning
Segment Market Outlook Positioning based on current portfolio • Conventional Energy: seek for on-shot IPP opportunities in markets where Abengoa has stable presence (Middle East, Mexico, Chile) • Independently owned assets present relevant opportunities • Renewable Energy: Abengoa can leverage its
Slide 44: O&M projects
Project Project Country COD Client O&M Project Description Overview • Ain Beni Mathar CCGT plant • 20 MW of solar installed capacity and a combined cycle 2+2+1 with 2x150 MW gas turbines Ain Beni Mathar 2010 ONEE 2 post-combustion steam-generating recovery boilers 1x180 MW steam turbine. 20 MW i
Slide 45: O&M projects continued
Project Project Country COD Client O&M Project Description Overview Abengoa / • Hassi R’Mel developed by Abengoa, which undertakes E&C and O&M NEAL (New • Combined cycle 2 GT+1 ST totaling 150 MW of installed capacity Hassi R’Mel 2011 Energy Algeria) 2 post-combustion steam-generating recovery boi
Slide 46: The Americas
The Americas María José Esteruelas 46 Chief Executive Officer, Geographies
Slide 47: Present in the Americas for more than 50 years
Present in the Americas for more than 50 years, consolidated presence in Argentina, Brazil, Chile, Peru, Uruguay, Mexico and USA. • Americas has historically been a key region for the Conventional 19,000 Km Transmission Lines 1.9 GW 268 Substations Company. It is expected to continue playing a key r
Slide 48: Argentina – Teyma
Argentina – Teyma Abengoa has built projects totaling c. 1,500 km of extra high voltage lines and more than 25 substations Company Presence and track record Expertise operating as local E&C services provider Competitive position ▪ First Abengoa subsidiary established outside Spain ▪ Commercial relat
Slide 49: Argentina main projects in execution
Argentina – Teyma Abengoa main projects in execution 500/132kV Substation “25 345kV Seccional Station 500/132kV Substation de Mayo” “Altiplano” “ Vivorata” ▪ 2x300 MVA Transformers ▪ In the desert of Cauchari, on ▪ Near the Atlantic Coast ▪ Inserted Between 2 LEAT 500kV in 4.000 mnsn ▪ With 900 MVA
Slide 50: Brazil – Company presence and track record
Brazil – Extensive experience and historical market leading position in the design, construction, commissioning and operating of power transmission lines. Company Presence and track record Core geography in the last years for infrastructure-type concessions development under an integrated product ap
Slide 51: Brazil – Main projects in execution
Brazil – Main projects in execution New Abengoa Old Abengoa Brasil Brasil Construction Concessions Restructuring Operation & Process Maintenance Construction HZNM LT Know How ATE III Ribeiro Operation & PVTE Balsas Maintenance Capabilities Partnership ETE ATE II NTE Abengoa as developer Logistic Cen
Slide 52: Chile – Company presence and track record
Chile – References include landmark infrastructure-type concessions, with Abengoa well positioned to capture future E&C opportunities. Company Presence and track record Present for over 30 years in Chile, with a vast experience in the development of power transmission and energy infrastructure proje
Slide 53: Chile – Main projects in execution
Chile – Main projects in execution Client Project Enel 1.- 84Km 2x220 kV transmission power line Los Cóndores – Ancoa Metro S.A. 2.- Maintenance contract for the Electric System Lines L3 and L6 3.- 140km 500 kV transmission power line and works in substations Los Changos – Kimal project. 4.- 2x220 k
Slide 54: Peru – Company presence and track record
Peru – Leading engineering and construction player with significant experience in power transmission concessions. Company Presence and track record Operating in Peru for ~25 years, the Company is focused on providing integral solutions to clients, particularly in civil, hydraulic and electromechanic
Slide 55: Peru – Main projects in execution
Peru – Main projects in execution Transmission Lines and Substations – Quebrada Honda Substation Retention dam construction New Toquepala Mine for Cuajone mining unit Workshops Minas Justa Project EPC EPC Civil Works Civil Works Project Data: Project Data: Project Data: Project Data: ▪ ‣ ‣ ‣ ▪ ‣ ‣ ‣
Slide 56: Uruguay – Company presence and track record
Uruguay – Wide ranging capabilities with relevant references with the main public and private companies in the T&I sector. Company Presence and track record Engages in E&C through Abengoa Teyma, with more than four decades of experience in the country, with a lean local structure including key funct
Slide 57: Uruguay – Main projects in execution
Uruguay – Main projects in execution Capurro fishing Railroad track Jacobo Varela Sector 5 – Army Curtain wall Parking Florida boat pier rehabilitation street Central facade Engineering and Placement of crushed stone, Construction of a new street Hospital Engineering, supply of Engineering and const
Slide 58: Mexico – Company presence and track record
Mexico – Well recognized as E&C player in the Mexican energy and water markets, having developed large scale projects. Company Presence and track record Technical capabilities in the energy sector, working on an ongoing basis for CFE and Pemex in addition to private clients. Main KPIs 542 80% Energy
Slide 59: United States – Company presence and track record
United States – Platform to increase contracting activity in the country managed by Abengoa’s Americas and Legacy unit Company Presence and track record Focus on E&C mainly in power transmission projects. Main KPIs 300 67% Energy 100% Workers Private Clients Revenues (2018) (June 2019) (2018) Compet
Slide 60: Technology & Innovation
Technology & Innovation José Lopez Dominguez Technology & Innovation Director 60 Reyes Capote Campos Biofuels Department Lead
Slide 61: Technology as key competitive advantage
Technological development continues to be Abengoa’s key competitive advantage in high added-value projects Innovation Areas of Focus H2 Main Lines of Technological Development Solar Thermal Energy Storage Hydrogen and Fuel Cells Aerospace Development of more efficient solar Development of storage sy
Slide 62: R&D and Innovation in Solar Thermal
Focus on innovation to maintain global leadership position in solar thermal R&D and Innovation in Solar Thermal • Technology developments include (i) new hybrid manageable solutions (Smart Solar Plants), (ii) applications for the heat production field, as well as (iii) design solutions to address ne
Slide 63: Custom-made energy storage solutions
Custom-made energy storage solutions for customers, some of which already implemented in commercial projects Analysis, development and integration of energy control and storage technologies Main Characteristics Applications Products Selected Projects • Design, engineering, integration and Energy Man
Slide 64: Hydrogen-based technology and solutions
Development of hydrogen-based innovative technology and solutions for the energy and transportation markets Main technological focus is on the design and development of solutions to produce hydrogen and its use as fuel in order to produce energy in fuel cells ▪ Own technology for hydrogen production
Slide 65: Aerospace and defense electronic systems
Design, manufacture and test power distribution systems and monitoring and control electronic systems for aerospace, defense and scientific sectors ▪ Active role in the development of the future Ariane 6 and VEGA-C European launchers for Airbus DS and AVIO, leading European aerospace contractors, wh
Slide 66: Hybrid Systems
Hybrid Systems Abengoa is able to integrate a wide range of technologies and provide all the necessary guarantees, providing bespoke solutions to a client’s specific operating requirements and needs 66
Slide 67: Technology conclusions
Conclusions 1 Technological development continues to be Abengoa’s key competitive advantage in high added-value projects 2 Having own products and being complex system integrators gives Abengoa great versatility 3 Projects are increasingly complex and the hybridization of technologies is a real nece
Slide 68: Municipal Solid Waste to Biofuels
Municipal Solid Waste to Biofuels Product: ➢ Converting MSW (Municipal Solid Waste) into Jet Fuel based on Gasification and Fischer Tropsch process. • Gas scrubbing • Compression • Acid gases removal • Catalysts and Guard-beds for contaminants removal Syngas Cleaning & Fischer-Tropsch Gasification M
Slide 69: Biofuels for aviation market
Biofuels for aviation market Biofuels for aviation expected growth IEA anticipates biofuels reaching around 10% of aviation fuel demand by 2030 and close to 20% by 2040 – equivalent to about 37 billion liters by 2030 and 75 billion liters by 2040. Aviation fuel consumption in the SDS, 2025-40 400 20
Slide 70: MSW Competitive Technologies
MSW Competitive Technologies Sustainable alternative for waste management The increasing amount of waste produced and the limitation of conventional technologies for waste management such as landfills and incineration are generating the need of new renewable alternatives. Conventional technologies f
Slide 71: Fulcrum Case Study
Fulcrum Case Study Fulcrum Project – Nevada, USA ➢ Client: Fulcrum BioEnergy 500 MSW Fulcrum BioEnergy FT syncrude 10 ton/day Mgalons/year MSW Sierra BioFuels Plant Syncrude Oil Unrefined oil MSW Syngas (Syncrude) Fischer- Gasification Cleaning & Tropsch Conditioning ➢ Engineering development, integ
Slide 72: Coffee Break
lL] L] Coffee Break ABENGOA 8 Investor Day 2019
Slide 73: Suppliers
Suppliers Javier Pariente 73 Chief Procurement Officer
Slide 74: Current status of overdue suppliers
Current status of overdue suppliers Definition of Overdue Supplier Debt ➢ Overdue Supplier Debt is commercial debt aged before the first restructuring (March 2017) ➢ Regardless of the origin, the debt is currently at two levels: 1. Abengoa, S.A. - Mainly legacy projects from businesses and countries
Slide 75: Evolution of overdue supplier debt
Evolution of overdue supplier debt Since December 2015, overdue debt with suppliers has been reduced from close to €1.1b to €488m. -€601m • Payments and others: Payments made, commercial agreements reached, releases, etc • Assets sold: Debt transferred along with sale of assets. • Projects on-going:
Slide 76: Moving forward with our suppliers
Moving forward with our suppliers Despite the outstanding debt with suppliers, the company maintains operations within reasonable market conditions: • Significant volume of transactions, especially with suppliers that worked with the company before the restructuring. 1.055 670 1.022 551 774 462 471
Slide 77: Human Resources and Sustainability
Human Resources and Sustainability Gonzalo Urquijo Fernández de Araoz 77 Executive Chairman
Slide 78: Human Capital
A highly skilled and efficient organization with close to 15,000 employees worldwide. Human Capital • Abengoa has a highly qualified and competitive team with Headcount Evolution close to 15,000 people operating in over 25 countries. • In the last few years we have carried out a strong 32.157 Restru
Slide 79: Sustainability is a main driver of our strategy
Sustainability is one of the main drivers of our strategy and a differentiating priority factor. 2019 The Board of Directors approved the Strategic Plan of CSR (SPCSR) for 2019-2023. Global management and responsible Governance Main Magnitudes • 446 Analysis conducted to comply with the FCPA Strateg
Slide 80: Restructuring
Restructuring David Jimenez-Blanco 80 Chief Restructuring & Strategy Officer
Slide 81: Releasing a profitable business from legacy financial structure
Releasing a profitable business from an inadequate legacy financial structure “Every block of stone has a statue inside it, and it is the task of the sculptor to discover it.” Michelangelo 81
Slide 82: Four-year strategic and financial turnaround
4-year period of profound strategic and financial turnaround to unlock the value in the core turnkey EPC business Fixing Capital structure Focused Business Model Inadequate ▪ Debt write-off & capitalization Capital ▪ Turnkey EPC business over two consecutive financial Structure restructurings ▪ Sale
Slide 83: New corporate structure after financial restructuring
New corporate structure after financial restructuring focuses E&C business under AbenewCo 1 Abridged Corporate Structure ABENGOA Abengoa, S.A. 100% Abengoa SPV created to hold debt from Junior AbenewCo 2, S.A. Old Money lenders through a AbenewCo 1 mandatory convertible instrument Debt Ring- Mandato
Slide 84: Operational efficiencies achieved over four years
Massive effort over the past four years to achieve operational efficiencies Immediately Pre Restructuring Post Restructuring I Post Restructuring II Return to positive New Management Team (since Nov-2016) 1 (€m) 515 EBITDA ▼147% ▲ 176% 188 (65%)1 EBITDA Dec-2015 Dec-2018 (241) Dec-2016 (€m) 2 452 ▼5
Slide 85: Divestiture Plan Status
Approximately 94% of the plan has been executed through sales or equity financing of the assets Completed ▪ Atlantica Yield: Sale of a stake of 41,5 % of Atlantica Yield, to Algonquin Power & Utilities Corp March 2018 successfully completed in 2018 55% Divestiture Plan Status ▪ Other: Sale of Bioene
Slide 86: Milestones achieved and pending
Abengoa is well underway to consolidate its position as a focused, sustainable EPC and O&M services provider in the energy and water segments Milestones Achieved Pending Milestones ▪ Re-focused business strategy ▪ Continue working on • Turnkey EPC management of legacy • Core geographies liabilities
Slide 87: The Viability Plan
The Viability Plan sets Abengoa in a post-restructuring scenario with a benign economic backdrop and improved competitive position The 10-year Viability Plan shows short and long term viability based on the following assumptions: • Business focus aligned with long-term investment trends Renewable
Slide 88: Sustained growth for the E&C business
Sustained growth for the E&C business. Concessions business mostly sold, with only one remaining assets in operation after 2021 Total Revenues (€m) CAGR 19-28 4.202 12.2% 4.500 3.577 3.859 3.251 25 4.000 24 (16.8)% 3.500 2.866 3.056 23 2.565 2.599 22 23 3.000 2.254 21 2.500 68 21 1.488 62 4.177 2.00
Slide 89: Expected sustained cash flow
With the exception of the initial years with high legacy costs, the company is expected to generate sustained cash flow over the period Main Perimeter (€m) 950 950 728 750 750 554 550 384 550 Cash Flow 350 270 350 96 156 170 174 38 30 41 55 60 114 114 Year-end Cash 150 8 30 1 11 150 (50) (50) (8) 20
Slide 90: Current Financial Instruments
Current Financial Instruments Daniel Alaminos 90 General Counsel & Secretary of the Board
Slide 91: Information on instruments
The information contained in this presentation does not pretend to be a complete summary of all the terms and conditions of the different instruments. It is only intended to provide a general overview of the main features of such instruments. The Terms and Conditions of the mandatory convertible ins
Slide 92: Financial instruments structure
ABENGOA Abengoa, S.A. 100% AbenewCo 2 JOM Mandatory Convertible €1,303 M 100% AbenewCo 2 Bis SOM Mandatory Convertible AbenewCo 1 Mandatory €1,647 M New Money 2 Convertible Noteholders 22.5%1 77.5%1 €158 M €5 M AbenewCo 1 Reinstated Debt €51 M A3T Convertible Bond Bonding Lines €323 M + €140 M Put O
Slide 93: Seniority ranking of debt instruments
Seniority ranking of different debt instruments Abengoa Perimeter A3T Structure 1 New Money 2 / New Bonding 1 Rollover Debt 2 Reinstated Debt 2 A3T Convertible Bond 3 MC AbenewCo 1 4 Senior Old Money 5 Junior Old Money 93
Slide 94: SOM Mandatory Convertible
Mandatory Convertible Notes issued by AbenewCo 2 Bis SOM Mandatory Convertible 1.5% PIK until the PIK Termination Date and PIYC thereafter. PIK Termination Date: earlier of (i) full discharge of most senior instruments (including A3T instruments) and (ii) the latest of (x) 31 March 2021 and (y) the
Slide 95: SOM Mandatory Convertible
Mandatory Convertible Notes issued by AbenewCo 2 Bis SOM Mandatory Convertible Mandatory Redemption Events ➢ On the Final Maturity Date, unless Noteholders elect to retain the Notes which can only do if the following circumstances are continuing: • Permitted Acceleration of the Notes on the Final Ma
Slide 96: SOM Mandatory Convertible
Mandatory Convertible Notes issued by AbenewCo 2 Bis SOM Mandatory Convertible Conversion Price: greater of ➢ The higher of (i) Floor Price (i.e. initially €1, subject to anti-dilution provisions) and (ii) face value of the shares Conversion Price ➢ Fair market value of the shares of Abenewco 2 Bis
Slide 97: JOM Mandatory Convertible (Fixed and Variable)
Mandatory Convertible Notes issued by AbenewCo 2 JOM Mandatory Convertible (Fixed and Variable) Same as SOM Mandatory Convertible Interest Rate No cash interest payable unless interest under SOM Mandatory Convertible and, in the case of JOM Fixed MC, interest under JOM Variable MC are paid in full 6
Slide 98: JOM Mandatory Convertible (Fixed and Variable)
Mandatory Convertible Notes issued by AbenewCo 2 JOM Mandatory Convertible (Fixed and Variable) JOM Fixed MC JOM Variable MC Mandatory ▪ SOM Redemption ▪ SOM Redemption Redemption ▪ JOM Fixed MC Redemption ▪ JOM Variable MC Redemption Events ▪ Event of Default ▪ Event of Default ▪ Final Maturity Dat
Slide 99: JOM Mandatory Convertible (Fixed and Variable)
Mandatory Convertible Notes issued by AbenewCo 2 JOM Mandatory Convertible (Fixed and Variable) JOM Fixed MC JOM Variable MC Conditions for equity redemption • Conditions for cash redemption not satisfied or if satisfied outstanding amounts remain under the Notes. • Conversion of JOM and release of
Slide 100: Debt and bonding lines issued by AbenewCo 1
Debt and bonding lines issued by AbenewCo 1 New Money 2 New Bonding Reinstated Debt Until 30 June 2020: Original New Bonding: 4.5% ▪ Cash component: 3%, quarterly payable Further New Bonding: 4.5%, adjustable following Interest ▪ PIK Component: 3% the development of the Leverage Ratio as follows: 4.
Slide 101: MC AbenewCo 1
Mandatory Convertible debt issued by AbenewCo 1 MC AbenewCo 1 Contingent ▪ Only payable upon payment of Distributions to Issuer’s Shareholders (including amounts distributed following Mandatory Prepayment Evets) Interest ▪ Equal to amount distributed per share multiplied by Conversion Ratio (e.g. 22
Slide 102: A3T Convertible Bond
Convertible debt issued by A3T Luxco 2 A3T Convertible Bond Issuer A3T Luxco, S.A. Guarantor AbenewCo 1 (Put Option Agreement) and A3T Luxco 1, S.A. Amount Issued € 97 M, converting into ordinary shares of the issuer representing 100% of its share capital Interest Rate 9% PIK per annum Maturity 31 D
Slide 103: A3T Convertible Bond Put Option
Put Option issued by AbenewCo 1 A3T Convertible Bond Put Option Grantor Abengoa Abenewco 1, S.A.U. The original holder of the A3T Convertible Bond (i.e. holder of the A3T Convertible Bond on day one or any entity within its Group holding it at any Beneficiary moment in time) Put option over: - The s
Slide 104: Roll Over Debt
Financial debt issued by A3T Luxco 2 Roll Over Debt Borrower A3T Luxco 2, SA €193.3M in two tranches Amount A: €190M B: €3.3M - Tranche A: 6% (3% PIK + 3% PIYC) Interest Rate ➢ PIYC Conditions: (i) Full repayment of NM1/3; and (ii) cash available to attend interest - Tranche B: Does not accrue inter
Slide 105: Financial Position
Financial Position Victor Pastor 105 Chief Financial Officer
Slide 106: 2019 First half financial results
2019 First half financial results (€ million) Key Considerations H1-2019 H1 2019 H1 2018 FY 2018 FY 2017 • Revenues of €709 million, a 28% increase in comparison to Revenues 709 552 1,303 1,480 June 2018. Increase in both E&C and concession revenues. EBITDA 137 87 188(1) 127(1) • EBITDA of €137 mi
Slide 107: Effects of 2019 financial restructuring on balance sheet and income statement
Effects of 2019 financial restructuring on Balance Sheet and Income Statement ▪ All restructured debt and newly issued debt booked at fair value at initial recognition, in accordance with NIIF 9. ▪ The financial restructuring had a positive effect on the Income Statement of €2,411 million under “Fin
Slide 108: Evolution of financial debt 2016 to 2019
Evolution of financial debt (€ million) Evolution of Financial Debt from 2016 to 2019 12.258 2.016 2.577 5.475 5.656 108 320 1.723 929 7.665 3.318 575 3.644 4.407 1.220 1.523 Dec 2016 Dec 2017 Dec 2018 Jun 19 Corp. Debt Held For Sale Project Debt Financial debt reduced by mix of two financial restru
Slide 109: Detail of corporate debt
Detail of corporate debt All figures as of June 30, 2019 Summary Amount (M€) AbenewCo 1 143 A3T Convertible Note1 99 AbenewCo 1 Old Money 413 A3T Old Money Ringfenced Country Debt 319 Ringfenced Countries Brazilian Debt 63 Brazil Palmas Altas HQ Palmas Altas HQ 77 Debt assoc. Projects Debt associate
Slide 110: Financial expenses
Financial expenses Since January 2017, the company has paid €381 M in financial expenses for New Money debt, Old Money debt , and bonding lines. In addition, €93 M was capitalized as NM2 and €76 M as Old Money debt. (€ million) 2017 2018 H1-2019 Subtotal New Money & 114 151 102 330 New bonding Old M
Slide 111: Cashflow
Cashflow Starting in 2018, the company’s business cash flow (profit for the period adjusted by non-monetary items) was positive. Figures in €million H1 2019 H1 2018 2018 2017 Profit/loss for the period from continuing 2,233 (76) (1,435) 4,580 operations Non-monetary adjustments & others (2,147) 145
Slide 112: Bonding lines
Bonding lines Evolution of Old Bonding Lines New Bonding Lines (prior to Mar. 2017) (obtained in March 2017 and April 2019) In M € In M € 140 1.223 447 307 548 Mar-17 Sept-19 Total obtained in New Bonding Lines since Old Bonding Lines are no longer active. March 2017. Of the 140 M obtained in They c
Slide 113: Questions & Answers
ol OC Questions & Answers ABENGOA 8 Investor Day 2019
Slide 114: Closing Remarks
Closing Remarks Gonzalo Urquijo Fernández de Araoz 114 Executive Chairman
Slide 115: Long-term value creation with focus on sustainable E&C
Abengoa is focused on creating long-term value, with a strategic focus on sustainable E&C activities Growth on core Best in class Operational Financial competencies; technology is efficiency and discipline, with Aim to develop business our competitive leaner strict management and retain talent devel
Slide 116: Soluciones tecnológicas innovadoras para el desarrollo sostenible
Soluciones tecnológicas innovadoras para el desarrollo sostenible